Should you buy an insurance write off?
Is buying an insurance write-off worth it? Repaired Category S and N write-offs are often cheaper when buying used. But is it a good idea?
- What is an insurance write off?
- Is it safe to buy a written off car?
- Write off categories explained
What is an insurance write-off?
When a car is damaged, stolen or involved in an accident, in nearly all cases the loss will be covered by insurance. There is no legal requirement to notify any industry body of damage to a car if you don’t claim, however, so it’s still possible for damaged cars to find their way onto the used market with a clean background check.
Since 1987 insurers have shared information with the motor industry on a central database that records damage, theft and claims for potential fraud. Any vehicle subject to an insurance claim will be recorded, but the assumption is that most claims will be for minor damage that is repaired correctly.
When a vehicle is considered beyond economic repair, it is written off and assigned a category. These determine the severity of the damage for anyone looking at the car in the future and also whether the car can be legally put back on the road or must be destroyed.
Buying a previously written-off car
- Look for older, low-mileage cars with good history and relatively recent damage
- Many non-structural write-offs can be as minor as a damaged bumper and lights
- Front and rear damage is generally easiest to assess and repair
You'll find plenty of cars advertised with Cat N and Cat S markers, with owners often perfectly happy to talk about what happened and what was repaired. If the saving over an equivalent car is significant, then there's little reason to avoid such vehicles.
If the car you are looking at is mainstream, over ten years old and has been damaged and repaired recently then it's likely that the repairs could have been very minor – particularly if the claim was the result of a third party.
The sensible choice: recorded Cat N, bought from the owner
As an example the typical large, flexible front bumper design used on most 21st-century designs is intended to fold and break away from the car easily to protect pedestrians. A new part, plus any associated components, preparation and painting could cost up to £2000 alone before any courtesy car or legal costs are added.
That's sufficient to write off many smaller cars between ten and fifteen years old even if they're low mileage and in perfect pre-accident condition.
In such cases the owner will often be allowed to keep the salvage at a low price. They may choose to repair it themselves if they're an enthusiast or pay a garage to do so using secondhand parts. Either way, if you can't see any problems with the fit and finish and everything else looks good, it's hard to see a downside.
If the rear bumper was damaged, you'll want to check the edge of the boot shut, weather sealing and boot floor for creases. Most insurance assessors will pick up on any sign of body deformation and assign the car a different category, but you'll have greater peace of mind knowing you've looked over it before purchase.
The risky option: more recent Cat N or Cat S bought from a dealer
Found a dealer offering a desirable model for an irresistible price? Even if they've been up-front about the car's accident history, be cautious – the whole point of buying, fixing and selling cars for a living is to make money, which means avoiding adding to the most necessary expense. For a Cat N car that might be minor, but if it's a Cat S you want to check everything twice.
Look for more than just the old tell-tales of mismatched paint, overspray or filler. You want to make sure any plastic clips or guides are intact, covers for lights are correct and the wiring has not been bodged.
Ensure any welded repairs to inner wings or structures are done to a high standard and not just hidden with fresh underseal. Check the tyres for uneven wear and look at the date codes to see how old they are. It's not unknown for cost-cutting to extend to the use of part-worn tyres and swapping spares with mismatched brands.
We've seen repairs as diverse as drilling a hole in the back panel of a car and fitting a cable tie rather than spending £20 on a bumper support guide, which are only apparent when looking behind trim or if you're very familiar with how that car should be put together.
Ultimately it's down to you to decide if the condition and quality of the car presented is worth it, but don't be conned into thinking it's a bargain just because the dealer's stated it's got a category marker. Check private, auction and retail sales for similar models first as you may find a private seller with a perfect example of the same car is willing to sell for the same price or less.
Avoid: fake private sellers offering more recent cars
Classifieds on Gumtree, Facebook Marketplace and elsewhere are full of traders pretending to be private sellers. You'll see plenty of cars offered with a category marker and optimistic claims that the repairs are invisible.
Not every amateur trader is dodgy, not every repair is bad, but when you combine a high turnover of vehicles and more recent, high value popular makes and models then you've got a parade of red flags. Sometimes you can click 'seller details' and see how many have been listed and what type - you might see some of the parts removed and sold as secondhand spares as well.
Many of these sellers will be trying to make a profit from salvage vehicles. Either buying as a consumer - in which case they're paying too much - or misrepresenting themselves and they're in the trade. Chances are you will find bodges or more often, a vehicle that wasn't worth the effort of repairing in the first place due to wear and tear.
The biggest red flag of all is 'damaged repaired, lost the V5C'. Salvage yards can buy Category B vehicles with the intention of stripping the parts and scrapping the shell, but there's nothing in place to stop that car being used on the road as long as it's in roadworthy condition and has a valid MoT until the DVLA is informed of a change of keeper or destruction.
Once you buy it and apply for the V5C, you'll find the car shouldn't have been put back on the road – and you have very few options for comeback in that situation. It's always a risk buying a car without the V5C, but buying an accident damaged and repaired car without a V5C? Unless you wanted a large pile of used spare parts and the responsibility of disposing of the bodyshell properly, don't do it...
Current insurance write-off categories in order of severity:
New insurance categories were introduced in 2017, along with stronger guidance on how the logbook is handled with damage recorded by DVLA and revised rules for flood damage and electric vehicle assessment.
Category N
Non-structural damage that is more expensive to repair than the car is worth once all claim costs are considered. The car can be sold on and repaired without needing an inspection or new MoT test. You can keep the logbook and the status is not recorded on the V5C. On an older car the damage could be very minor but outweighed by the need to provide a hire car for the duration of repairs, for example.
Remaining MoT is acceptable as long as the damage is repaired and the car is roadworthy.
Category S
Structural damage that is considered repairable, but exceeds the value of the car. These cars will often not be drivable without major work and a Category S car should be recorded on the V5C logbook. In most cases a Category S car will need an MoT before it can be used on the road.
Category B
The structure of the car is beyond repair, but parts from the car may be removed and used to repair other vehicles.
Category A
The entire vehicle must be crushed.
Pre-2017 insurance categories
The older system of categories applied since the 1980s, which remains in common use when discussing accident-damaged and repairable cars.
Category D
Damaged repairable, comparable to Category N since 2017. Cat D cars usually sustained minor damage that did not exceed the market value but was uneconomic to repair once any associated costs, such as transport, hire cars and storage, had been taken into account. If a car was assigned Category D when it was over seven years old it's likely that the damage was not significant.
Category C
Closely related to Cat S, but not necessarily structural. Repairs deemed to be in excess of market value. Cars that were given a Category C marker when relatively new could be quite badly damaged and were often subject to a now-obsolete identity check to make sure they were not repaired with stolen parts or a swapped identity, known as ‘ringing’.
Historically, Cat C cars were the ones to exercise the most caution around when buying used and the biggest red flag if not openly declared but revealed by a history check.
Category B
Largely unchanged, Cat B cars are only suitable for spares and the bodyshell and identity should be destroyed. There are cases of Cat B cars being put back on the road by their owners but the DVLA will not issue a new logbook if the procedure has been followed. In cases of classic or rare cars, the correct procedure should have been to either reduce the category, or reshell the vehicle with a new identity (often issued with a Q-plate).
Category A
As with current categories, a Cat A car should have been destroyed and no parts re-used.
Additional categories used by salvage/scrap yards
When selling recovered or damaged vehicles, dealers such as Copart use additional categories not defined by the Association of British Insurers and not relevant to the DVLA. These categories can be helpful in determining what level of damage a car might have sustained before the salvage firm takes possession.
Category X
A vehicle that has been stolen and insurance has paid out, but has subsequently been recovered. It may be in usable condition, or may need serious mechanical work. It is not recorded on the logbook, but the insurance claim will be in the vehicle's history.
Category U
Used salvage vehicle, potentially just sold as a house clearance or scrapped via a car buying scheme. Could have serious mechanical issues or other problems, but no recorded damage.
Category E
A stolen recovered classification. These flags are of interest in the case of uninsured/unrecovered losses, as the insurance company may still have a legal claim on the car.
What type of damage causes cars to be written-off?
Under the current ABI code of practice, the process to determine whether a car should be written off and whether it can be returned to the road, is very clear.
The good news for a keen DIY repairer considering buying a cat N car is that the guidance clearly limits the damage to easily replaced panels with the exception of the roof and rear quarters, which are less likely to be bolt-on pieces.
Whether a car is in an accident, vandalised, water damaged or caught fire, the resulting category should reflect the repairability as assessed. Some factors mean that a car that looks undamaged may be considered non-repairable.
Accident damage
For a car to be considered repairable, accident damage must be confined to easily-repaired components - though for it to be written off, the new price and availability of those components means repair is not economical. In other words, you are free to use secondhand parts if you want, but insurance companies will not – and that is where the cost advantage of buying a written-off car can make sense.
It is important to remember that the insurance assessment is based on 'known damage'. A car that has a damaged bumper and headlight from skidding off the road may also have suspension and mechanical damage that is not considered or known when it is assessed.
Attempted theft of, or from, the vehicle may also be considered accident damage. A typical example of this would be the theft of a catalytic converter and damage to the sills or bodywork.
Fire or theft damage
Vehicles that have been subject to fire or a criminal investigation may be considered unrepairable even for minor damage. Fire damage is assessed on proximity to structural and safety related components, including the affect it has on materials such as alloys or composites. Stolen recovered cars may have components removed for investigation or biological contamination.
Generally any stolen recovered, recorded cars offered as repairable Cat N or S vehicles will be relatively undamaged, but don't underestimate the work involved in repairing wiring, trim and safety systems even if the bodyshell and mechanical parts are perfect.
Water damage and floods
Aside from the mechanical damage many cars sustain when driven into floodwater, the majority of written-off vehicles due to flooding are deemed unrepairable and many will be placed in Cat A. This is because of the risk of infection or disease from water trapped in the car trim and bodywork.
There are other reasons why an otherwise repairable car may be written off, such as ethical concerns. In many accidents there are victims and there's no argument for putting a car back on the road if it would cause distress.
Pickups and light commercial vehicles
For vehicles under 7.5 tonnes, a separate chassis is considered part of the bodywork even if it is undamaged. That means that a recorded write-off of a pickup with body damage outside of the rear bed, doors or panelling should have both the cab and chassis destroyed. Be wary of anyone offering a damaged 4x4 without a logbook, as it's likely it won't be possible to get it back on the road legally even if the chassis is perfect.
Buying an accident damaged car to repair
Private sellers can offer their cars for sale with accident damage after an insurance payout. Cars that have been recovered and processed by an insurance company following a write-off are offered for sale by salvage yards and recyclers. The biggest name in the accident damaged car marketplace is Copart. It runs a professional auction sales system as well as offering cars via eBay and occasionally, classified adverts.
Copart's network means you see classic cars, cars from house clearances, unwanted trade stock and rare or exotic models. It's surprisingly easy to find a tempting project or two if you fancy your skills at DIY.
If you're reading this article to learn something, then you probably want to stick to category N or U listings. Anyone who has the skills and facilities to profitably repair a category S vehicle could teach us a thing or two about repairs. Or bravery.
As with buying a repaired car, brush up on the current market for that make and model, see what's on offer not just from dealers, but on relevant forums and classifieds. Cars that have been damaged and stored will always need more work than you first assume and cars sold privately might not have the same expert description and understanding of the damage.
Before bidding on any car - accident damaged or not - don't forget to check the MoT history for any mileage discrepancies, long periods off the road, or persistent advisory notes that haven't been attended to. If corrosion is mentioned, it may be better to walk away than add that to your list of repairs.
Salvage auctions and fees: why the bargain probably isn't
The price you see on a Copart listing is, unsurprisingly, not what you pay. In fact, Copart's fee structure is entirely capable of pushing a salvage car's cost above the trade price of an average condition retail example bought at an auction such as BCA.
Most large car salvage operations charge a similar structure – this is by no means singling Copart out, but as the largest operator it sets the benchmark.
The costs of buying a car from Copart
To bid, you must join Copart. They quote prices ex. VAT, but we'll give you the costs including VAT since this article is aimed at private buyers. The membership fee is £120, and renewal is £90 per year.
For each vehicle you buy there is a buyer fee scale relating to the final bid price. If you buy less than 12 cars in a year you pay the higher rate, starting at £24 for vehicles under £50, then £65 up to £100. This increases up to £590 below £10,000, then is a 6.5% fee (+ VAT).
Placing a bid also costs money. An opening bid over £100 is £30, and online bidding fees can cost as much as £132.
Once you win your auction, you'll also pay £50 to retrieve the vehicle. If you can't collect within three working days a sliding scale of storage fees applies, up to £48 per day from the tenth day. If you don't pay after winning the auction you'll be charged £300 or 10% of the final auction price, whichever is the greater.
As an example, if you see a Cat N car with light bumper damage going for around £3000 when most advertised examples are over £4000, it could seem like a bargain. Buy a secondhand bumper, tidy the scuffs, and you're away.
Except a £3000 bid will actually cost you £3676.80, assuming you collect the car quickly. And this is before considering the cost of transporting your vehicle home, which is likely to cost more than £200 even if you rent a suitable recovery vehicle or trailer. Add to that the cost of a new MoT in many cases, possibly the need to replace numberplates and broken or missing keys, and of course – your time.
For traders, the costs and VAT are recoverable expenses and they may already have a suitable recovery vehicle. The fees are also lower if buying more frequently. You're bidding against skilled, experienced specialists for the desirable cars and their costs to repair are going to be lower. Do you really want something they've decided is too expensive to bother with?
Repair costs and panels: disposable bodywork
Judge your damaged car very carefully, particularly when it comes to roof panels, glazing and rear quarters, sill trims and wheel arches. As a rule, many cars now have doors, front wings, bumpers and sill coverings that are easy to remove and replace. Rear quarter panels and wheelarches are much harder to fix. Some panels can be 'pulled' out with skill, but for the novice it is easy to to more damage.
You may find it acceptable to just drive a cheaper car with a few small dents or creases on these cosmetic panels, in which case if the car's got excellent history and overall condition, it's definitely worth doing. Just don't fall into the trap of wasting money trying to fill and paint it – use the car as is and spend the money on mechanical maintenance.
Bumpers on modern cars are often thin, flexible plastic that is designed to bend at slow speeds and crack with a sudden force. This allows it to deform for parking bumps or if hitting a pedestrian, but break away from the side mountings in an accident.
You'll find most second-hand bumpers have sustained some damage and market prices can be surprisingly high for a scruffy bit of plastic. You may want to try repairing what you have.
Light units are often a structural part of the car fascia and many modern car headlights are incredibly expensive if they feature self-levelling, HID (Xenon) or LED bulbs or any form of adaptive/matrix technology.
They're also susceptible to damage if left open to the environment or submerged - not always immediately apparent. Broken support brackets are common even if the light looks intact so be prepared to either repair the brackets or replace the light unit. For cracked lenses, you can often find aftermarket replacements from suppliers on AliExpress or Amazon.
Finally, don't underestimate the cost of replacing or repairing wheel arch liners and undertrays. Even if you've checked the crossmember, radiator, condenser and any related pipes for damage, the cost of the plastic surrounding them may shock you.
It might look unimportant, but car manufacturers never spend money they don't need to. For example, missing the rear fill panel on a car with a low rear bumper might not change the look, but it can increase fuel consumption and noise levels as wind gets pulled into the space behind the bumper.
Some useful skills to learn (without painting or welding)
Alongside the expected skills of undoing and refitting fasteners, checking and replacing components, and repairing wiring looms, you will probably find a plastic welding kit immensely useful.
These hot irons are essentially soldering irons with a specific type of end for guiding and pushing plastics of varying types. Kits usually come with hot staples and metal gauze. In some cases repairs from behind the panel may leave just the smallest cracks visible, rather than needing to fill and repaint.
It's also worth getting the hang of using a machine polisher and cutting compound. Not for paint, but for headlights.
While the front end is apart is the perfect time to thoroughly polish and refinish the typical cloudy, yellow lenses of modern headlights, removing the UV lacquer, restoring the finish, then relacquering for the best result. Try using a clay bar on the headlights first, you will be surprised at how much metallic environmental fallout the UV lacquer can hold contributing to the yellowed appearance.
Before buying it's a good idea to familiarise yourself with a marque-specific code reader and diagnostic computer to check for faults in the rest of the car.
Maybe that accident was down to a failing AWD transfer case, duff ABS sensor or hub, or a loss of control due to an electric power steering fault. Depending on the car's condition some errors will be logical, but anything which is out of the ordinary, or shows up in the historical log many manufacturer specific systems can read, might help you avoid buying a bad project in the first place.
The verdict: is it worth buying a write-off?
- Cat S? Leave it to the professionals, and leave it at the dealers
- Cat N? If it's an older, minor repair, or you've done your research to DIY it, go ahead
- Don't forget that it's still a used car with history, so there's plenty to go wrong anyway
For an average car buyer, enthusiast or not, buying a Cat S write off will generally be a bad idea whether it's already repaired, or as a project to repair.
The only circumstances where a Cat S might make sense is if it's a 4x4 with a separate chassis such as a pickup, older Land Rover or Range Rover, or a classic car and the repair is akin to a restoration. If it's an everyday, common car, just buy the undamaged one that's a few thousand miles or a couple of years older but has a good service history.
When it comes to Cat N cars, you should be able to judge the quality of repair without any expert skills, just a little focus on remembering to include things like tyres, body sealing and boot trims. Much as you would do when assessing any used car and looking for undisclosed damage.
It helps if the car was older and not worth much when written off, as you can be fairly confident it will only have been the sort of minor damage you might end up inflicting on it yourself or find has occurred in a car park or when parked on the street.
In other words, accidents happen and at least you've paid less and it's already happened, rather than having a perfect car you looked after and then someone did that to it.
On the same lines, buying a Cat N to restore yourself so you know the quality of the work is to a standard you are happy with can be quite rewarding, particularly if you find the perfect, rare specification of car that you struggled to get elsewhere.
Just keep an eye on the additional costs, because nothing dampens the enthusiasm for a winning bid like being landed with half as much again in fees.
Most of the time a good repair that brings the car to a standard comparable with a car with no history has very little impact on sale price, but on a newer car that has a substantial value, it can affect your insurance payout and cover.
On that basis, do not finance a car with a write-off marker – even if the finance firm will cover it, you're likely to be in negative equity from the start. Keep write-offs in a budget you yourself can write-off if things don't go to plan.
